Press Release
Huon AIRC hearing adjourned, Commission orders conference of major customers for 4.30pm tomorrow
Wednesday July 19, 2006
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Victorian State Secretary Antony Thow
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An application for an s496 order against the National Union of Workers and Australian Manufacturing Workers Union to force members from Huon Corporation back to work, was adjourned late this afternoon (Wednesday July 19).
The Commission instead ordered a Conference between the administrators, unions and Huon’s major customers – including the big three car companies Holden, Ford and Toyota – tomorrow afternoon (July 20) to try to broker a rescue deal for the failing company.
Huon Corporation went into voluntary administration almost three weeks ago, leaving nearly 600 workers at its three sites – Empire Rubber in Bendigo, FRN in Frankston and Mills Elastomers in Dandenong – with uncertain futures.
Last Friday administrators – SimsPartners – announced that 108 workers from Empire Rubber and 14 from Mills Elastomers would need to be made redundant with no payment of their entitlements. It was expected further redundancies would take place at FRN soon after.
So last Friday workers at all three sites launched a community protest, to try to secure the entitlements of the 122 workers, and the rest of the employees’ long term.
Car component company ZF Lemfoerder sought the S496 order today, arguing the continuing industrial action at Empire Rubber would force it to stand down much of its workforce this afternoon.
ZF makes axel and front suspension components for the new Holden Commodore at its South Australian factory.
After lengthy negotiations at the AIRC yesterday the NUW and AMWU agreed to release the ZF products from Empire Rubber, after the latter brokered a deal with the administrators to pay market rate – approximately $80,000 – for the components and cooperate with SimsPartners’ proposed rescue package for Huon Corporation.
NUW Victorian State Secretary Antony Thow praised ZF for its attitude towards the negotiations and its commitment to assist the survival of Empire Rubber and he called on Huon’s other key customers to follow its lead.
“Huon Corporation is an important part of the Australian Automotive Industry, as illustrated by the fact there have been threats of mass stand-downs at other sites after the factories have been closed for just a few days.
“It is time the car industry recognised the contribution this company and its workers have made to the industry over more than 30 years and come together and work together to ensure the survival of this crucial business,” Thow said.
“Tomorrow’s conference, to be chaired by AIRC Commissioner Blair is an opportunity for all the major players to come together and support the SimsPartners’ rescue package and try to get these hard-working employees back to work.
“The car industry needs Huon Corporation, our members need Huon Corporation and we are hopeful we will be able to broker a rescue deal tomorrow afternoon to secure our members’ entitlements and employment future.”
The conference will begin at the AIRC in Melbourne at 4.30pm tomorrow (July 20, 2006) afternoon.
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Last modified 2008-10-17 12:56 PM
